Exa Earnings: Here’s Why Investors are Selling Shares Now

Exa Corp (NASDAQ:EXA) had a loss and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0.87%.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

Exa Corp Earnings Cheat Sheet

Results:

Revenue: Decreased 0.61% to $13.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: reported adjusted EPS loss of $0.01 per share. By that measure, the company missed the mean analyst estimate of $0.03. It missed the average revenue estimate of $13.32 million.

Quoting Management: “Revenue of $13.1 million in the fourth quarter was level with the fourth quarter last year,” said Stephen Remondi, President and Chief Executive Officer of Exa. “Customers slowed their discretionary spending slightly more than we had anticipated at the end of the calendar year, resulting in revenue that was at the lower end of our guidance for the fourth quarter. With expenses that were higher than projected, primarily due to shifts in the timing of expenses, we produced a net loss of ($0.3) million, or ($0.03) per share, which corresponds to a non-GAAP net loss of ($0.1) million, or ($0.01) per average weighted share. Over the course of the year, we made significant investments in expanding our sales and field engineering teams to pursue and generate new business in the broader ground transportation and closely adjacent markets. While these investments did not yield the level of return we expected in the fiscal year in terms of revenue growth, we firmly believe that these additional investments position us strongly to improve revenue growth in fiscal 2014 and beyond.”

Key Stats (on next page)…

Revenue increased 3.15% from $12.7 million in the previous quarter. EPS decreased to $-0.01 in the quarter versus EPS of $0.02 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.03 and has not changed. For the current year, the average estimate is a profit of $0.14, which is the same with that ninety days ago.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)